1Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2act relating to tax reform and State taxation by codifying
3and enumerating certain subjects of taxation and imposing
4taxes thereon; providing procedures for the payment,
5collection, administration and enforcement thereof; providing
6for tax credits in certain cases; conferring powers and
7imposing duties upon the Department of Revenue, certain
8employers, fiduciaries, individuals, persons, corporations
9and other entities; prescribing crimes, offenses and
10penalties," in inheritance tax, further providing for the
11imposition of tax, for the rate of inheritance and for
12returns.

13The General Assembly of the Commonwealth of Pennsylvania
14hereby enacts as follows:

15Section 1. Section 2106 of the act of March 4, 1971 (P.L.6, 
16No.2), known as the Tax Reform Code of 1971, added August 4, 
171991 (P.L.97, No.22), is amended to read:

18Section 2106. Imposition of Tax.--(a) An inheritance tax
19for the use of the Commonwealth is imposed upon every transfer
20subject to tax under this article at the rates specified in
21section 2116.

22(b) This section shall not apply to the estates of decedents 

1dying on or after January 1, 2021.

2Section 2. Section 2116(a) of the act, amended May 24, 2000 
3(P.L.106, No.23), is amended to read:

4Section 2116. Inheritance Tax.--(a) (1) Inheritance tax
5upon the transfer of property passing to or for the use of any
6of the following shall be at the rate of four and one-half per
7cent[:] for estates of decedents dying before January 1, 2014; 
8at the rate of two and one-half per cent for estates of 
9decedents dying on or after January 1, 2014, and before January 
101, 2015; and at the rate of one-half per cent for estates of 
11decedents dying on or after January 1, 2015, and before January 
121, 2016; and at the rate of zero per cent for estates of 
13decedents dying after January 1, 2016:

14(i) grandfather, grandmother, father, mother, except
15transfers under subclause (1.2), and lineal descendants; or

16(ii) wife or widow and husband or widower of a child.

17(1.1) Inheritance tax upon the transfer of property passing
18to or for the use of a husband or wife shall be:

19(i) At the rate of three per cent for estates of decedents
20dying on or after July 1, 1994, and before January 1, 1995.

21(ii) At a rate of zero per cent for estates of decedents
22dying on or after January 1, 1995.

23(1.2) Inheritance tax upon the transfer of property from a
24child twenty-one years of age or younger to or for the use of a
25natural parent, an adoptive parent or a stepparent of the child
26shall be at the rate of zero per cent.

27(1.3) Inheritance tax upon the transfer of property passing
28to or for the use of a sibling shall be at the rate of twelve
29per cent[.] for estates of decedents dying before January 1, 
302014; at the rate of ten per cent for estates of decedents dying 

1on or after January 1, 2014, and before January 1, 2015; at the 
2rate of eight per cent for estates of decedents dying on or 
3after January 1, 2015, and before January 1, 2016; at the rate 
4of six per cent for estates of decedents dying on or after 
5January 1, 2016, and before January 1, 2017; at the rate of four 
6per cent for estates of decedents dying on or after January 1, 
72017, and before January 1, 2018; at the rate of two per cent 
8for estates of decedents dying on or after January 1, 2018, and 
9before January 1, 2019; and at the rate of zero per cent for 
10estates of decedents dying on or after January 1, 2019.

11(2) Inheritance tax upon the transfer of property passing to
12or for the use of all persons other than those designated in
13subclause (1), (1.1), (1.2) or (1.3) or exempt under section
142111(m) shall be at the rate of fifteen per cent[.] for estates 
15of decedents dying before January 1, 2014; at the rate of 
16thirteen percent for estates of decedents dying on or after 
17January 1, 2014, and before January 1, 2015, at the rate of 
18eleven per cent for estates of decedents dying on or after 
19January 1, 2015, and before January 1, 2016; at the rate of nine 
20per cent for estates of decedents dying on or after January 1, 
212016, and before January 1, 2017; at the rate of seven per cent 
22for estates of decedents dying on or after January 1, 2017, and 
23before January 1, 2018; at the rate of five per cent for estates 
24of decedents dying on or after January 1, 2018, and before 
25January 1, 2019; at the rate of three per cent for estates of 
26decedents dying on or after January 1, 2019, and before January 
271, 2020; at the rate of one per cent for estates of decedents 
28dying on or after January 1, 2020, and before January 1, 2021; 
29and at the rate of zero per cent for estates of decedents dying 
30on or after January 1, 2021.

1(3) When property passes to or for the use of a husband and
2wife with right of survivorship, one of whom is taxable at a
3rate lower than the other, the lower rate of tax shall be
4applied to the entire interest.

5* * *

6Section 3. Section 2136 of the act is amended by adding a
7subsection to read:

8Section 2136. Returns.--* * *

9(g) This section shall not apply to the estates of decedents
10dying on or after January 1, 2021, except as referenced by
11section 2145.

12Section 4. This act shall take effect immediately.